ZIKMUNDBABIN CARR GRIFFIN BUSINESS MARKET RESEARCH EIGHTH EDITION

LEARNING OUTCOMES After studying this chapter, you should be able to Discuss the advantages and disadvantages of secondary data Define types of secondary data analysis conducted by business research managers Identify various internal and proprietary sources of secondary data Give examples of various external sources of secondary data Describe the impact of single-source data and globalization on secondary data research © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

Secondary Data Research Data gathered and recorded by someone else prior to and for a purpose other than the current project. Advantages Available Faster and less expensive than acquiring primary data Requires no access to subjects Inexpensive—government data is often free May provide information otherwise not accessible Disadvantages Uncertain accuracy Data not consistent with needs Inappropriate units of measurement Time period inappropriate (outdated) © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

EXHIBIT 8.1 Evaluating Secondary Data Is it possible to go to the original data source? © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

Secondary Data Research (cont’d) Data conversion The process of changing the original form of the data to a format suitable to achieve the research objective Also called data transformation Cross-checks The comparison of data from one source with data from another source to determine the similarity of independent projects. © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

EXHIBIT 8.2 Common Research Objectives for Secondary-Data Studies © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

Typical Objectives for Secondary-Data Research Designs Fact Finding Identification of consumer behavior for a product category Trend Analysis Market tracking—the observation and analysis of trends in industry volume and brand share over time. Environmental Scanning Information gathering and fact-finding that is designed to detect indications of environmental changes in their initial stages of development. © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

EXHIBIT 8.3 Cola’s Share of the Carbonated Soft-Drink Market Source: Theresa Howard, “Coca-Cola Hopes Taking New Path Leads to Success,” USA Today, March 6, 2001, p. 6b. From USA Today a division of Gannett Co., Inc. Reprinted with Permission. © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

Estimating Market Potential Analysis of Trade Areas and Sites Model Building Estimating Market Potential Forecasting Sales Model Building Analysis of Trade Areas and Sites © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

EXHIBIT 8.4 Market Potential for Beer in Four Countries © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

EXHIBIT 8.5 Sales Forecast Using Secondary Data and Moving Averages © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

EXHIBIT 8.6 Secondary Data for Calculating an Index of Retail Saturation © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

Data Mining Data Mining Neural Network The use of powerful computers to dig through volumes of data to discover patterns about an organization’s customers and products; applies to many different forms of analysis. Neural Network A form of artificial intelligence in which a computer is programmed to mimic the way that human brains process information. © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

Data Mining (cont’d) Market-Basket Analysis Customer Discovery A form of data mining that analyzes anonymous point-of-sale transaction databases to identify coinciding purchases or relationships between products purchased and other retail shopping information. Customer Discovery Involves mining data to look for patterns identifying who is likely to be a valuable customer. © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

Database Marketing and Customer Relationship Management The use of customer relationship management (CRM) databases to promote one-to-one relationships with customers and create precisely targeted promotions. The practice of maintaining a customer database of: Names and addresses Past purchases Responses to past efforts Data from numerous other outside sources © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

Sources of Internal Secondary Data Internal and Proprietary Data Accounting information Sales information and backorders Customer complaints, service records, warranty card returns, and other records. Intranets © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

External Secondary Data Sources External Data Generated or recorded by an entity other than the researcher’s organization. Information as a product and its distribution Libraries Internet Vendors Producers Books and periodicals Government Media Trade associations Commercial sources © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

EXHIBIT 8.7 Information as a Product and Its Distribution Channels © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

Commercial Sources Market-share data Demographic and census updates Consumer attitude and public opinion research Consumption and purchase behavior data Advertising research © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

Single-Source and Global Research Data Single-Source Data Diverse types of data offered by a single company. Usually integrated on the basis of a common variable (i.e., geographic area or store). Government Agencies Global secondary data Typical limitations of secondary data Additional pitfalls Unavailable in some countries Questionable accuracy (political influences) Lack of standardized research terminology CIA’s World Factbook; National Trade Data Bank © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

EXHIBIT 8.9 Examples of Single-Source Databases © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

Research Snapshot: Around the World of Data © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.

EXHIBIT 8.10 Examples of Information Contained in the NTDB Agricultural commodity production and trade Basic export information Calendars of trade fairs and exhibitions Capital markets and export financing Country reports on economic and social policies and trade practices Energy production, supply, and inventories Exchange rates Export licensing information Guides to doing business in foreign countries International trade terms directory How-to guides International trade regulations/agreements International trade agreements Labor, employment, and productivity Maritime and shipping information Market research reports Overseas contacts Overseas and domestic industry information Price indexes Small business information State exports State trade contacts Trade opportunities U.S. export regulations U.S. import and export statistics by country and commodity U.S. international transactions World Fact Book World minerals production © 2010South-Western/ Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.